Commercial Auto Insurance in Arizona

The great state of Arizona is home to over 600,000 small businesses, employing more than 1.1 million individuals across the state. Many of these businesses rely on vehicles to conduct their daily operations, making commercial auto insurance a crucial aspect of their risk management strategy. Commercial auto insurance in Arizona, also known as commercial vehicle insurance, offers businesses coverage for bodily injury and property damage liability resulting from motor vehicle accidents involving company vehicles.

Having auto insurance is not just a legal requirement but also a smart business decision. It helps pay for damages that your business would otherwise have to pay out of pocket, potentially saving you from significant financial losses. It also can help you and your employees to continue operating smoothly after an accident. Your coverage choices can be tailored to meet the specific needs of your business whether you own a single vehicle or manage an entire fleet.

At Infinity Insurance Agency, Inc (IIA), we understand the unique challenges that Arizona businesses face. Our goal is to provide you with the best coverage options and support, so you can focus on what you do best — running your business.

Who needs commercial auto insurance in Arizona?

In Arizona, all commercial drivers need auto insurance due to state requirements. Some businesses may need higher limits than others due to the nature of their business operations. Here are some common examples of businesses in Arizona that have commercial auto insurance:

• Construction companies: These businesses often operate multiple vehicles including trucks and heavy equipment.
• Food trucks: Mobility is key for food trucks, making commercial auto insurance essential.
• Contractors: From electricians to plumbers, contractors need reliable transportation to reach their clients.
• HVAC technicians: These professionals travel frequently to install and service heating and cooling systems.
• Landscapers: Commercial auto insurance is necessary for vehicles used to transport equipment.
• Couriers: Delivery services rely on their vehicles to meet customer expectations.
• Cleaning services: These businesses might want to help protect vehicles used for their business purposes.
• Mobile auto detailers: Regular travel to various customer locations makes insurance a necessity.

Commercial auto insurance requirements in Arizona

In Arizona, all vehicles must have a minimum amount of auto liability insurance coverage. This requirement extends to commercial vehicles, and businesses must obtain at least the minimum amount of coverage in the event of an accident. The state minimum requirements for auto insurance in Arizona are:

• $25,000 bodily injury liability for one person
• $50,000 bodily injury liability for two or more persons
• $15,000 property damage liability

These minimums offer a basic level of financial protection, but many businesses might opt for higher limits due to the increased risks associated with their operations.

How much does commercial auto insurance cost in Arizona?

The cost of commercial auto insurance in Arizona can vary significantly based on several factors. Understanding these factors can help your business find a policy that fits its budget while providing the necessary coverage. Here are some key factors that influence the cost of commercial auto insurance:

• Type of Vehicle: The make, model and year of the vehicle can impact the premium. Larger, more expensive vehicles typically cost more to insure.
• Usage: How a vehicle is used can affect the cost.
• Driving History: A clean driving record can help lower premiums. Businesses with drivers that have a history of accidents or violations may face increased costs.
• Location: Insurance rates can vary based on where the business is located and where each vehicle is primarily driven.
• Coverage Limits: Higher coverage limits generally result in higher premiums.
• Deductibles: Choosing a higher deductible can lower your business’s premium, but it likely means more out-of-pocket costs in the event of a claim.

Potential discounts are available that can help reduce the cost of commercial auto insurance. These include discounts for paying the premium in full, bundling with other insurance policies like Commercial General Liability (CGL), and having a good driving record. 

IIA offers coverage options for businesses in Arizona

IIA offers a range of coverage options from various insurers to help meet the diverse needs of Arizona businesses. Our commercial auto insurance policies can include:

• Liability coverage: Helps to pay for claims involving bodily injury to another person or property damage to another’s vehicle or property if your business is at fault for an accident.
• Collision coverage: Helps to pay for damage to your vehicle resulting from a collision with another vehicle or object.
• Comprehensive coverage: Helps to pay for damage to your vehicle from non-collision events such as theft, vandalism, or natural disasters.